GS-Hydro Holding Oy and its subsidiary GS-Hydro Oy file for bankruptcy

GS-Hydro Holding Oy and its subsidiary GS-Hydro Oy have filed for bankruptcy today at the District Court of Kanta-Häme following consultation with their owner Ratos and majority lenders. 

The Board of Directors of GS-Hydro Holding Oy and its subsidiary GS-Hydro Oy (together "GS-Hydro" or the company) have resolved to initiate bankruptcy proceedings and have today filed for bankruptcy at the District Court of Kanta-Häme. The GS-Hydro Group has experienced liquidity and profitability problems for some time, and these became acute when one of the company’s largest customers could not meet its payment commitments to a company within the GS-Hydro Group.

The company’s situation is primarily the result of a weak development and substantial price pressure in the offshore markets in combination with the company’s insufficiently competitive market position. In recent years, the company’s Board of Directors and management have together with its owners implemented an extensive action programme to improve profitability and meet the challenging market conditions. In combination with this Ratos has made substantial capital contributions since 2015. All these actions have unfortunately not been enough to compensate for the weakening market conditions.

“It is deeply regrettable that the company is in this situation and we naturally regret the worry and the consequences this will have on the company’s employees, customers and suppliers. In recent years, we have worked intensively with profit-improving measures, but the strained situation in several of GS-Hydro’s markets, a tough competitive situation and the fact that our largest customer can no longer meet its payment commitments to us, has created very challenging conditions for us to reverse the negative trend,” says Juha Silvennoinen, CEO of GS-Hydro.

“It is, of course, a very difficult decision for a Board to make. When it became apparent that one of GS-Hydro’s largest customers could no longer meet its payment commitments to us, an already difficult situation, with a long period of financial problems and weak market conditions, became even more difficult. Intensive efforts to find new financing for the company has unfortunately failed to yield results and hence we are forced to make this decision,” says Per Nordgren, Chairman of the Board of GS-Hydro.

The bankruptcy estate’s administrator, who will be appointed in connection with the commencement of bankruptcy proceedings for GS-Hydro Holding Oy and GS-Hydro Oy, will provide more information about the proceedings within the scope of his authority. No decisions about potential bankruptcy proceedings have been taken at this stage about the subsidiaries of GS-Hydro Oy.

GS-Hydro has approximately 600 employees in 17 countries. In 2016, sales amounted to EUR 93.7m and operating loss (EBITA) to EUR -15.8m.

For further information please contact:

Per Nordgren, Chairman, +46 70 3981606
Juha Silvennoinen, CEO, +358 45 8046055

GS-Hydro is a global supplier of non-welded piping solutions. Piping systems are mainly used for hydraulic applications with high demands on fast installation, high cleanliness and minimal production shutdowns. GS-Hydro’s products and services are used within the marine and offshore industries, within land-based segments such as the paper and metals industries and in test equipment for the automotive industry. GS-Hydro has operations worldwide, its own employees in 15 countries and its head office in Espoo, Finland. The company is owned by the Swedish investment company Ratos AB.